Warm weather is one reason Kohl's doesn't expect to make shareholders happy later this month.
February 5, 2016
A warm fall and early winter season is likely to put a chill on Kohl's final Q4 earnings as the retailer is already giving shareholders and the street a head's up that it didn't do as well as expected at the end of 2015.
There was little growth in same-store sales and less than expected overall sales, and that's the prime reason Kohl's is reducing its full-year guidance.
The news didn’t sit well with stock owners as shares dipped 15 percent Thursday. The dip marks Kohl's biggest stock decline in more than 13 years, according to Bloomberg. Kohl's will present it financials on Feb. 25.
According to a Market Watch report, Kohl's has revamped its expected adjusted earnings to land between $3.95 and $4.00 a share, a bit lower than the initial prediction of $4.40 to $4.60. The adjusted figures are due to "very volatile and less than planned," stated Kohl's CEO Kevin Mansell in a statement.
The news isn't completely unexpected as more than a few retailers had a rough Q4 thanks to warm weather that stalled traditional sales of winter clothing. While Michael Kors had a successful Q4 it is already warning the street that this year may be a bit sluggish. Unilever is taking a similar stance with its CEO using the word "volatile" to describe the year ahead. Yet top etailer Amazon, whose financials didn't hit analysts' expectations in Q4, believes 2016 will bring success due to its focus on providing exceptional customer service and improving the customer experience.
